Quarterly Financial Information of Bankwell Financial Group, Inc. (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information of Bankwell Financial Group, Inc. (Unaudited)

The following tables present selected quarterly financial information (unaudited):


	December 31, 2020
	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
	(Dollars in thousands, except per share amounts)
Total interest and dividend income	$	19,146	$	18,922	$	19,323	$	20,096
Total interest expense	4,842		5,314		5,686		6,810
Net interest income	14,304		13,608		13,637		13,286
Provision for loan losses	709		712		2,999		3,185
Total noninterest income	621		614		577		1,072
Total noninterest expense	13,703		9,729		9,722		9,659
Income before income tax expense	513		3,781		1,493		1,514
Income tax expense	177		790		279		151
Net income	$	336	$	2,991	$	1,214	$	1,363
Earnings per common share:
Basic	$	0.04	$	0.38	$	0.16	$	0.17
Diluted	$	0.04	$	0.38	$	0.16	$	0.17

In the fourth quarter of 2020, the Company recognized a $3.9 million one-time charge recorded in noninterest expense for office consolidation, vendor contract termination and employee severance costs.

The office consolidation costs, which totaled $2.0 million as of December 31, 2020 primarily related to a $1.7 million write down of a Bank owned property that is currently being marketed for sale and an impairment charge of $0.3 million relating to a right of use asset on a leased property. The Company expects the office consolidation process to be substantially complete by the end of the second quarter of 2021.

The vendor contract termination cost, which totaled $1.1 million as of December 31, 2020 was due to the retirement of a legacy online banking application, which will be replaced with an application to drive commercial deposit growth. The vendor contract termination cost is expected to be paid prior to the end of the second quarter of 2021. The vendor contract termination cost is included in data processing expense on the consolidated statements of income.

The employee severance costs, which totaled $0.8 million related to a Voluntary Early Retirement Incentive Plan offered to eligible employees and additional severance charges recognized during the fourth quarter of 2020. A total of $24 thousand of employee severance costs has been paid as of December 31, 2020 and the remainder is expected to be paid prior to the end of the first quarter of 2021. The employee severance costs are included in salaries and employee benefits expense on the consolidated statements of income.


	December 31, 2019
	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
	(Dollars in thousands, except per share amounts)
Total interest and dividend income	$	19,933	$	20,493	$	21,046	$	21,476
Total interest expense	7,051		7,482		7,451		7,203
Net interest income	12,882		13,011		13,595		14,273
Provision (credit) for loan losses	310		773		(841)		195
Total noninterest income	1,048		1,552		1,336		1,308
Total noninterest expense	9,224		8,672		8,755		8,975
Income before income tax expense	4,396		5,118		7,017		6,411
Income tax expense	924		1,030		1,441		1,331
Net income	$	3,472	$	4,088	$	5,576	$	5,080
Earnings per common share:
Basic	$	0.44	$	0.52	$	0.71	$	0.65
Diluted	$	0.44	$	0.52	$	0.71	$	0.65

Note: Due to rounding, quarterly earnings per share may not sum to reported annual earnings per share.